In a budget line, a simultaneous and proportional decrease in the price of the good on the y-axis and the good on the x-axis is graphically represented by:
A. a rightward parallel shift of the budget line.
B. a steeper slope of the budget line.
C. a leftward parallel shift of the budget line.
D. a flatter slope of the budget line.
Answer: A
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During the financial crisis, which type of risk was the biggest problem faced by investment banks?
A) interest-rate risk B) currency risk C) hedging risk D) credit risk
Explain how exchange rate changes affect aggregate demand.
What will be an ideal response?
If a monopolist's marginal revenue is $25 and its marginal cost is $19, then the monopolist should:
A. leave its output and price unchanged. B. increase its output. C. decrease its output. D. raise its price.
Suppose that a price index in Paraguay was 131 in 2015 and 152 in 2016. The inflation rate between those two years was approximately:
A. 10.5 percent. B. 11.6 percent. C. 16 percent. D. 21 percent.